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Shiba Inu Turns Mid-Term Investment as Short-Term Holders Capitulate

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Tue, 12/21/2021 - 10:37
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Arman Shirinyan
Shiba Inu traders are becoming more patient, with the number of mid-term holders increasing significantly
Shiba Inu Turns Mid-Term Investment as Short-Term Holders Capitulate
Cover image via stock.adobe.com

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The population of Shiba Inu holders has changed significantly since reaching its all-time high in October. The new structure of investors may be a more stable solution for the token.

Number of short-term holders reaching 0%

One of the main indications of a safe, structured environment for an asset that trades on the market for more than three months is the number of mid- and long-term investors. With SHIB's recent market performance reflected in a 1,000% pump in less than two weeks, the number of short-term holders is dominating over mid-term investors.

Related
SHIB Spikes 8% as Whale Buys 4 Trillion Shiba Inu Tokens

Due to the speculative nature of the majority of opened positions on the market, Shib went through a strong market correction that resulted in an almost 70% reversal.

Mid-term investors take charge

According to the composition of holders by time held, mid-term wallets currently account for 86% of all holders on the chain. The first direct indicator of the asset's stability is normalized volatility. Under "normal" conditions, traditional traders assume that the asset trades with less than 5% daily volatility.

Shiba Inu IntoTheBlock Data
Source: IntoTheBlock

Shib's volatility was far from stable or "normal" during both the pump and correction periods. The asset has been losing more than 20% of its value per day while gaining up to 80% the day before.

How could mid-term traders affect the asset?

While the asset's movement in terms of price is not being determined by holders' composition, factors like volatility are. With the increase of mid-term holders, the volatility of Shiba Inu is already decreasing significantly, with average daily volatility reaching 5%.

At press time, SHIB trades at $0.000035 and is going through 4.2% price growth while losing almost 15% yesterday before the recovery.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.